How does a credit card “Grace Period” work? Is that similar with the “monthly due date?”?

Isaac Hayes: How does a credit card “Grace Period” work? Is that similar with the “monthly due date?”?
How does a credit card “Grace Period” work? Could someone please explain this to me in detail?

Ten points will be awarded to the best answer.

Thanks a lot!

Answers and Views:

Answer by joe p
In short…yes. The grace period ends on the due date. For example: If you start with a $ 0 balance on June 1, make $ 300 worth of charges by June 30 (let’s assume June 1 is the opening statement date and June 30 is the closing statement date…they vary from account to account) and you then get a bill which indicates you must make a payment by July 25, the ‘grace period’ is from June 30 to July 25. If you pay the whole $ 300 by July 25, then you will not be charged any interest on your balance.

Answer by angermakesmehappy
A credit card Grace period means say Grace because they are going to raise the interest rate.

Answer by bigjimmyguy
The grace period is important since if you go over the cycle you are subject to penalties and fees. A grace period is the time between the close of your billing period and the date your payment is due. In other words, it is the time you have before a credit card company starts charging you interest on your new purchases if there is no previous balance.
However there is a trick to beating the usual grace period. To do this you need to know your billing period. Say your billing period is June 1 to June 30 and you want to buy a big item but you need a couple of months to pay for it. Anything you put on your credit card up to June 30 is on this bill and probably payable 25 days after that, so if you buy something on June 25, it will be on your June 30 bill and you will have to pay for it by July25, BUT if you purchase it on July 1, it will not make it on that bill, it will be on the next one…..so you have all of July and most of August before that next bill comes in giving you almost 2 months before you have to pay for it. Waiting a couple of days gives you an extra month and sometimes thats all you need to come up with the cash and not pay interest.
Keep in mind however that cash advances are charged interest from the second you take the money out.

Answer by jyd9999
what they said